SINGAPORE, Oct 14 (Reuters) – Chicago soy futures rose for a
fifth straight session on Friday, buoyed by expectations of
higher demand from China, the world’s top importer, and firm
cash market in the United States.
Wheat rose 0.4 percent after sliding more than 6 percent in
the last two days following the U.S. government forecast of
higher global and U.S. grain supplies, while corn gained 0.2
percent in early Asian trade.
FUNDAMENTALS
* Soy has rallied this week on support from firm cash
markets as well as some end user buying, shrugging off customs
data showing China’s imports of soybeans fell 11 percent in
September from a year ago.
* But traders expect China’s soy import to climb in the
coming months on the back of positive crush margins and strong
demand from the livestock industry.
* The National Oilseed Processors Association’s monthly
crush data slated for release on Friday should show the U.S.
crush for September at 118.05 million bushels, analysts
projected on Thursday.
* The wheat market has been under pressure since Wednesday
when the USDA boosted its domestic wheat stocks outlook by 10
percent and raised its world supply view by 4 percent in its
monthly crop report.
* Argentina’s 2011/12 wheat harvest is expected to total at
least 12.6 million tonnes, down from 15.8 million tonnes last
season, the Buenos Aires Grains Exchange said in its first
estimate of the crop.
* The U.S. government confirmed the sale of 900,000 tonnes
of U.S. corn to China, signaling the country’s emergence as a
major importer that could prove to be explosive for grains
markets.
* It was the second largest sale of U.S. corn in a single
day to China which came a day after China said it was buying 1.5
million tonnes of the grain. There was an
additional 292,110 tonnes of U.S corn sold to unknown
destinations, USDA said.
MARKET NEWS
* The euro slipped against the dollar on Thursday a day
after hitting an almost one-month high, as investors refocused
on worries about European banks and a deteriorating growth
outlook for the euro zone.
* Brent crude snapped six sessions of gains on Thursday,
trading slightly lower after data showed further declines in oil
demand from No. 2 consumer China.
* The Dow and S&P 500 slipped on Thursday after JPMorgan’s
earnings and China’s soft trade data revived worries about the
impact of slower growth on profits.
DATA/EVENTS
0130 China CPI yy Sep 2011
0130 China PPI yy Sep 2011
0900 EZ Inflation, final yy Sep 2011
0900 EZ Eurostat trade nsa, EUR Aug
1230 U.S. Retail sales September
1355 U.S. Reuters/UMich Sentiment Index Oct-P
1400 U.S. Business inventories August
1400 U.S. USDA export sales Weekly
1930 U.S. CFTC Commitments of traders Weekly
Prices at 2308 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 620.25 2.25 +0.36% -1.04% 666.02 44
CBOT corn 639.75 1.50 +0.24% -0.81% 666.52 56
CBOT soy 1258.25 1.25 +0.10% +1.51% 1289.92 64
CBOT rice $16.43 $0.02 +0.12% +0.43% $16.88 58
WTI crude $84.07 -$0.16 -0.19% -2.03% $83.80 56
Currencies
Euro/dlr $1.374 $0.009 +0.65% +0.69%
USD/AUD 1.015 0.019 +1.91% +1.67%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per hundredweight
RSI 14, exponential
(Reporting by Naveen Thukral)
http://af.reuters.com